• $1.1 billion in financing: Brazil commits to local sustainable fuel production with significant funding.
• Support for green goals: BNDES could invest directly in biofuel ventures that align with environmental objectives.
• Industry momentum: Major players like Raizen SA and Petrobras are advancing in the sustainable aviation fuel (SAF) sector.

Brazil is stepping up its commitment to sustainable aviation fuel (SAF) production with a substantial $1.1 billion financing initiative. The country’s development bank, BNDES, and government funding agency, Finep, are offering 6 billion Brazilian reais in subsidized loans to boost local production of sustainable fuels for airplanes and vessels. These funds will support research, engineering projects, industrial plants, and the acquisition of necessary machinery and equipment.

“These credit lines are a crucial step towards ensuring Brazil’s leadership in the green fuel sector,” said Brazil’s Ministry of Development, Industry, Trade and Services in a statement. The financing initiative highlights the growing interest in SAF production within the country.

BNDES is also exploring the possibility of becoming a direct investor in biofuel ventures that align with Brazil’s green goals. “We are prepared to consider partnerships in projects that contribute to our environmental objectives,” stated BNDES CEO Aloizio Mercadante during a recent press briefing.

This initiative coincides with increased activity in Brazil’s SAF sector. Notably, Raizen SA, a joint venture between Shell Plc and Cosan SA, has announced plans to construct a jet fuel plant. Similarly, BP Plc has expanded its stake in a Brazilian ethanol company that certifies its products for SAF production. Additionally, Mubadala-backed Acelen Energia Renovável SA intends to launch a SAF plant in Bahia, while Petrobras is exploring SAF production in at least two of its refineries.

Amid these developments, Mercadante has emphasized the importance of retaining investments within Brazil. This stance follows a January 2023 decision by a subsidiary of Granbio, a Brazilian industrial biotechnology firm, to pursue a project in the United States after securing an $80 million grant from the U.S. Department of Energy. “We must fight to keep investments here in Brazil, where they can best support our economic and environmental ambitions,” Mercadante affirmed.

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Brazil’s strategic financing move underscores its ambition to be a global leader in sustainable aviation fuel, driving forward both economic growth and environmental stewardship.